The dollar plunged as Republican Donald Trump appears poised to win the U.S. presidential election, shocking traders who were betting on a Clinton victory. A Trump victory comes as the second major shock to foreign-exchange markets after the Brexit referendum. The dollar dipped against its major peers losing 2.7 percent against the Japanese yen to last trade at 102.32 JPY. Odds of a December rate hike have plunged plunge as U.S. stock index futures are down more than 4%, the 10-year Treasury yield is off 12 basis points, and Fed Funds futures are now pricing in less than a 50% chance of a December move. Asian Markets are heading for a bearish close setting the tone for what promises to be a dramatic day for the rest of the world’s financial markets.
European stock markets are heading for some very steep falls as markets prepare to ring the opening bell in less than an hour. Global Markets are reliving a June Brexit meltdown as Donald Trump is currently in the lead. This comes as a complete and utter shock to investors around the world and European stocks indices futures point to a sharply lower open with Germany’s DAX set to open 4.2 percent lower, France’s CAC 40 poised for a 4.3 percent lower star, U.K’s FTSE 100 set to open 3.6 percent lower and the Euro Stoxx heading for a 4.6 percent lower open as of 7:25 GMT.
Gold rallied on Wednesday to reach its strongest value in more than five weeks as investors sought to invest safe haven assets on news that Republican Donald Trump was in the lead of today’s race for the White House. Trump won Ohio and led Clinton in a series of other states that were too close to call, including Florida and North Carolina. Trump is leading Clinton by 48 Electoral College votes, as of 7:30 GMT according to media reports.